Stock Price Trends

Williams-Sonoma Inc (WSM)

Williams-Sonoma, Inc. is an omnichannel specialty retailer of various home products. The company is headquartered in San Francisco, California.

Stock Price Trends

Stock price trends estimated using linear regression.

Key facts

  • The primary trend is increasing.
  • The growth rate of the primary trend is 84.77% per annum.
  • WSM price at the close of July 8, 2025 was $169.21 and was lower than the bottom border of the primary price channel by $20.32 (10.72%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 18.03% per annum.
  • WSM price at the close of July 8, 2025 was inside the secondary price channel.

Linear Regression Model

Model equation:
Yi = α + β × Xi + εi

Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)

Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)

where:

i - observation number
Yi - natural logarithm of WSM price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e


Primary Trend

Start date: October 7, 2022
End date: March 12, 2025

a = 2.4438

b = 0.0017

s = 0.1344

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0017) – 1
= 84.77%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1344) – 1
= 71.22%

October 7, 2022 calculations

Top border of price channel:

Exp(Y567)
= Exp(a + b × X567 + 2 × s)
= Exp(a + b × 820 + 2 × s)
= Exp(2.4438 + 0.0017 × 820 + 2 × 0.1344)
= Exp(4.0919)
= $59.85

Bottom border of price channel:

Exp(Y567)
= Exp(a + b × X567 – 2 × s)
= Exp(a + b × 820 – 2 × s)
= Exp(2.4438 + 0.0017 × 820 – 2 × 0.1344)
= Exp(3.5541)
= $34.96

March 12, 2025 calculations

Top border of price channel:

Exp(Y1,174)
= Exp(a + b × X1,174 + 2 × s)
= Exp(a + b × 1,707 + 2 × s)
= Exp(2.4438 + 0.0017 × 1,707 + 2 × 0.1344)
= Exp(5.5839)
= $266.09

Bottom border of price channel:

Exp(Y1,174)
= Exp(a + b × X1,174 – 2 × s)
= Exp(a + b × 1,707 – 2 × s)
= Exp(2.4438 + 0.0017 × 1,707 – 2 × 0.1344)
= Exp(5.0461)
= $155.41

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 84.77% per annum.
  • WSM price at the close of July 8, 2025 was $169.21 and was lower than the bottom border of the primary price channel by $20.32 (10.72%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: March 13, 2024
End date: July 8, 2025

a = 4.3368

b = 0.0005

s = 0.1188

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0005) – 1
= 18.03%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1188) – 1
= 60.81%

March 13, 2024 calculations

Top border of price channel:

Exp(Y925)
= Exp(a + b × X925 + 2 × s)
= Exp(a + b × 1,343 + 2 × s)
= Exp(4.3368 + 0.0005 × 1,343 + 2 × 0.1188)
= Exp(5.1844)
= $178.46

Bottom border of price channel:

Exp(Y925)
= Exp(a + b × X925 – 2 × s)
= Exp(a + b × 1,343 – 2 × s)
= Exp(4.3368 + 0.0005 × 1,343 – 2 × 0.1188)
= Exp(4.7093)
= $110.98

July 8, 2025 calculations

Top border of price channel:

Exp(Y1,254)
= Exp(a + b × X1,254 + 2 × s)
= Exp(a + b × 1,825 + 2 × s)
= Exp(4.3368 + 0.0005 × 1,825 + 2 × 0.1188)
= Exp(5.4033)
= $222.15

Bottom border of price channel:

Exp(Y1,254)
= Exp(a + b × X1,254 – 2 × s)
= Exp(a + b × 1,825 – 2 × s)
= Exp(4.3368 + 0.0005 × 1,825 – 2 × 0.1188)
= Exp(4.9283)
= $138.14

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 18.03% per annum.
  • WSM price at the close of July 8, 2025 was inside the secondary price channel.

See Also

Symbol

Company name

RH
RH